The Solow residual is that part of output growth attributed to:
A)the growth rate of the labour force.
B)the growth rate of output.
C)the growth rate of the capital stock.
D)the grow rate of technology.

Question

Quizplus · Accepted Answer

The Solow residual, also known as total factor productivity, represents the portion of output growth that is not explained by changes in inputs such as labor and capital, and is instead attributed to technological progress and other factors that increase the efficiency of production. Therefore, the correct choice is D, the growth rate of technology.

The Solow Residual Is That Part of Output Growth Attributed